Procedure for Licence Applications

Supervisory Information Circulars

Date: Mon, 28 June 2021

The objective of this circular is to provide supplemental guidance to entities seeking to apply for a licence to operate in or from within the Cayman Islands (the “Islands”), pursuant to any of the regulatory Acts.

Applications to the Cayman Islands Monetary Authority (the “Authority”) for the grant of licences, must be accompanied by such documents and information as set out in the applicable Act, relevant Regulations, Regulatory Policy or guidance issued by the Authority relating to the licensing process, along with the prescribed fee.

To minimise the turnaround time in processing licence applications, potential applicants and their agents are encouraged to strictly adhere to the requirements and to provide complete documentation and the prescribed fee required in support of the application in the first instance.

Key Information

Information in respect of the following areas is of particular importance to the Authority in its review of a licence application:

Business Plan – This should include details of the reasons for seeking to establish an operation in the Cayman Islands, the short and long-term objectives and how these will be achieved, as well as background information on the company/group history, beneficial owner(s), governing body, number of expected employees and corporate structure of the applicant.
Mind and Management - Applicants must demonstrate that they are managed by a sufficient number of directors and senior managers who are fit and proper and pose no undue risk to the applicant, its shareholders, beneficial owners, creditors and the reputation of the Islands. In addition, the legal, managerial and ownership structures of the applicant and its wider group must be transparent (i.e. not unnecessarily complex) and must not hinder effective cross-border and consolidated supervision or the effective implementation of corrective measures by the Authority.
Financial Resources - The Authority must be satisfied that the applicant will have, and will continue to have, financial resources (whether actual or contingent) that are adequate for the nature and scale of the business proposed and for its risk profile. The Authority will assess the applicant’s sources of initial capital, sources of funds, sources of wealth and financial resources in accordance with the activities to be conducted, the requirements of the regulatory Act, relevant regulations, rules, policies and statements of guidance. Supporting documents would include net worth statements for individuals, audited financial statements for companies or unaudited management accounts signed off by a certified or accredited company or individual.
Internal Systems, Controls and Risk Management – The applicant must demonstrate that it will have in place a comprehensive risk management process, internal controls, and information technology governance. Supporting documents will include the applicant’s policies, procedures, manuals and information on its systems and internal controls, relating to all of the applicant’s risk areas that are appropriate for the size, nature and complexity of its operations.

Timelines

The processing timelines for licence applications are outlined in the Authority’s Regulatory Handbook.1 It is of particular importance to note that the timeframe for processing an application does not commence until the complete application package is received.

Additional Information

Please see below the links to the respective divisions’ applicable policies, as well as FAQs relating to the licence application process:

Banking Supervision Division

Fiduciary Services Division

Insurance Supervision Division

Investments Supervision Division

Securities Supervision Division

Licensing policy

Procedure for Licence Applications

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